Negotiating Skills and Strategies - Term Paper Example

?Table of contents 0 Introduction----------------------------------------------------------------2 2.0 Summary of readings and interview------------------------------------3 3.0 Summary of major factors in negotiation------------------------------4 3.1 BATNA-----------------------------------------------------------6 3.2 Summary of RP-------------------------------------------------7 3.3 Important of ethics in negotiation-----------------------------7 3.4 Elements of integrative negotiation---------------------------8 3.5 Approaches to conflict resolution-----------------------------9 4.0 Review of major insights------------------------------------------------10 5.0 Conclusion-----------------------------------------------------------------11 6.0 References-----------------------------------------------------------------13 1.0 Introduction According to Noble (2001), “a negotiation is an interactive communication process that may take place whenever we want something from someone else or another person wants something from us.” Speech and other forms of non verbal communication are mainly used in negotiation and Kennedy (2004), suggests that the main purpose of negotiation is to reach an agreement based on mutual understanding between the parties involved. It is argued that negotiation is unavoidable in life since we need something from others in our daily lives and an agreement based on common understanding can be reached through negotiation. Thus, negotiation broadly encompasses the process by which we arrange exchanges of things we want for the things we have. Negotiation can take place between different parties and this process is at times regarded as “a zero-sum transaction- what one gains, the other loses whereby their approach to the deal is to give less than they receive,” (Kennedy, 2004, p.13). More often than not, people negotiate because they value things differently. The monitory value is seen as very important when people engage in negotiation and these parties often prefer a win-win situation with the aim of reaching an acceptable agreement. However, it is argued that there are naturally gifted negotiators but when it comes to aspects concerning legal practitioners and mediators, it can be noted that negotiators are not naturally gifted and this can be observed from the difference between a ‘Master Negotiator’ and a ‘Novice Negotiator’(Noble, 2001). There are different styles of negotiation and there are also many factors that influence the success or failure of a negotiation process. From this assertion, this report seeks to discuss the factors that influence the negotiation process and measures that can be implemented in order to improve negotiation skills. The report will explain in detail the phases involved in the negotiation process through an analysis of the details of the interview that was conducted by the writer. 2.0 Summary of readings and the interview Negotiation is a process that can be divided into three phases namely: the pre bargain phase, bargain phase and the closure phase (Noble, 2001). This first phase is mainly concerned with gathering information that can be used in the negotiation process and is also concerned with establishing a rapport between the two parties involved. The goals and expectations of the negotiation process are set at this stage. Gathering information about the other partner is advantageous in that one will be better positioned to set realistic goals and plan according to the budget that might be available. The second phase in the negotiation process is concerned with the logistics involved and the tactics that can be used by the negotiator to reach a mutual agreement. Resolutions are made at this stage and the third stage is concerned with implementation of the agreement made. This phase also involves documentation of the contents of the agreement. Since this paper is based on negotiating skills and strategy, the writer chose to interview a manager at Kaiser Permanente who oversees many union employees out of interest emanating from the understanding that that managing in a union environment requires quite a lot of negotiating with the members. The objective of the interview with the manager - Jose DeGuia - was to find out the skills and strategies he employed when negotiating with the union. The decision to eliminate the file clerk position within the organisation was met with mixed reactions as the union resisted the proposed change. However, besides some misunderstandings in the negotiation process, an agreement was eventually reached and this can be attributed to the factors that were taken into consideration during the process. The manager pointed that patience is very important when negotiating a deal that will bring about major changes to the organisation. Preparation is very important and careful plans ought to be decided so as to overcome the challenges such as resistance to change that can be encountered during the process. As also shown by the literature reviewed about negotiation, the success of negotiation can also be attributed to the offers and concessions made during the process of negotiating. This will attempt to create a win-win situation whereby the other party will not bargain at the expense of the other. 3.0 Summary of major factors in the negotiation process The following factors are very important in determining the success or the failure of the negotiation process and these include: the need to gather information about yourself and the other party, estimate their value price for the deal, understand your best alternative to no agreement (BATNA) and research about the other party’s BATNA (Kennedy, 2004). As noted from the literature and the results of the interview conducted, it is imperative to gather information that is relevant to the subject matter of the negotiation process. Negotiators should have all the required information so that they will be better positioned to reach an agreement based on mutual understanding. As pointed out by the manager interviewed in this case, the negotiator must have personal information whereby the strengths as well as the weaknesses can be delineated so as to be in a position to engage in a negotiation based on factual details. Information gathering is the preliminary stage in the negotiation process and it is very important given that facts ought to be obtained about the pros and cons of the process. Having collected the vital information required, the negotiator should then embark on conducting a research about his or her own best alternative to no agreement (BATNA). In some cases, the other party can decline to enter into any form of agreement if the conditions are unfavourable and this is the reason why the negotiators must know their BATNA. With this information at hand, the negotiator has the capacity to make bilateral concessions in some instances where the parties involved fail to reach a mutual agreement. Conceding some of the offers is seen as a major factor that can influence the success or failure of the negotiation process. The other important factor in the negotiation process is about knowing the other party’s BATNA. This will enable the negotiator to understand the level of demand by the other party where necessary concessions can be made so as to suit the needs and interests of both parties. This allows the people involved in the deal to clarify some of the facts and adopt a position that will be mutually beneficial to them. As noted, already, the main purpose of negotiation is to reach an agreement where exchange of something for something will follow and this must be based on mutual understanding. Where there is mutual understanding between the parties involved, it becomes relatively easier to attain the set goals. An offering can be discussed and where necessary, a concession can be made as well so as to create a fair deal. The reservation price (RP) is the other strategic factor that is very important in the negotiation process. This should not be conceded for the other offerings as this will weaken the negotiator’s position. This is mainly concerned with the price offered and concession can only be an option if the deal will remain profitable after agreeing to concede some offers. The essence of negotiating is to create a win-win situation hence the need for the negotiators to take a firm position or should make concerted efforts to make offerings that that are commensurate with what the other party will be willing to concede. The approach used by the negotiators is also very important in the negotiation process. The negotiators should adopt an accommodative style whereby persuasion is used rather than threats. This can allow the negotiator to make informed decisions that will be beneficial to both parties involved. 3.1 BATNA The alternative to no agreement (BATNA) is the most important part of the negotiation process as it outlines the position of the negotiator in comparison to the proposals given for the deal (Kennedy, 2004). An attractive BATNA is advantageous in that it gives power to the negotiator to create a win-win situation in the negotiation process. The negotiator should list alternative solutions that can be implemented in the event that the parties have failed to reach an agreement and this can be influenced by an effective BATNA. A compromise deal can be an alternative in the event that the parties involved have failed to reach a mutual agreement. Though they may differ in their views, the negotiators will still be interested in the deal given that each party will benefit from the other. Through the use of the accommodative style, the negotiator can convert the available options into practical ideas. According to Kennedy (2004), the negotiator may consider to adjust the BATNA to meet the offering by the other partner or reject the deal if it is not beneficial. This gives the negotiator the power to concede certain proposals or to make necessary adjustments so as to benefit from the negotiation process. Negotiation should not be one sided since it is meant benefit both parties involved given that something will be exchanged for something. 3.2 Summary of reservation price (RP) According to (Bazerman & Neale, 1992), a negotiator has the freedom to decline any deal that is based on unfair terms and conditions. When the negotiator realises that the deal will be unprofitable, he may not engage in that deal. However, of concern is the need for the negotiators not to overestimate their prices as this can jeopardise their deal. Where the original RP is unreachable, there will be need for the negotiators to revise their positions. The negotiator must not bow to pressure and surrender but it has been noted from the reviewed literature that the negotiator can adjust the RP in as much as it will not compromise the outcome of the deal. There is need to identify the likely factors that can impact on the RP before making the final proposal to the other negotiator. In other words, there is need to take a holistic approach in dealing with this concept given that a mutual agreement ought to be made before concluding the negotiation. 3.3 Importance of Ethical/Unethical behaviours in negotiation According to Rossouw (2004), the concept of ethics is concerned with distinguishing between something that is good from bad. When negotiating for something, it is unethical to lie and the principle of truthfulness should be upheld always so as to promote credibility of the deal. Lying is one of the major factors that negatively impact on the negotiation process as there will be no trust between the parties involved. According to Tompson (2005), negotiation should be based on fairness and equality. Noble (2001) concurs with this notion when he indicates that the attitude of the negotiator s should be accommodative so as to be able to create a conducive climate that is based on openness and mutual understanding. The behaviour of the negotiator plays a critical role in as far as the concept of ethics is concerned. Openness in negotiation is a very important factor since it creates a free environment where there is common understanding between the parties involved. 3.4 Elements of integrative negotiation In order to create a win-win situation, the integrative approach is more ideal in the negotiation process given that it promotes the creation of mutual trust among the people involved whereby sharing of information can eliminate the likely chances of conflicts emerging during the course of negotiation. According to Kennedy (2004), this approach to negotiation is ideal to people who share common interests and this approach can enable the negotiators to create mutual understanding through sharing of information. In conflict situations, sharing of information is very important given that the essence of negotiation is to reach an agreement between two parties involved. Integration of the ideas of the parties involved greatly helps in ensuring that all the views are accommodated which will reduce the chances of conflict among the people involved. It is not advocated to have one negotiator yielding more power over the other party as this will create an unfair situation where decisions made will not reflect the wills of the other parties involved. Where the ideas are freely shared among the members involved, there will be likely chances of generating knowledge that can be utilised in making an acceptable decision. When the people involved in a negotiation process agree on something in a free manner, there will be less chances of conflict. 3.5 Approaches to conflict resolution As noted from the interview conducted in this case, the element of leadership plays a pivotal role in resolving conflict. In some cases, the negotiator may yield more power over the other members which can make him influence the behaviour of the others. Schultz et al (2004), defines leadership as the ability to influence the behaviour of the other people towards the attainment of a particular goal. However, research has shown that supportive leadership style in more ideal in approaching a conflict given that this style accommodates the ideas and views of many people involved. The aspect of respect is very important in as far as negotiation is concerned. Where the people involved in the negotiation process treat each other equally, there will be likely chances that they can reach an agreement that is based on mutual understanding. Hostility is not advocated in the process of negotiation as it will derail the process when people are unnecessarily arguing over minor things that can be solved through sharing of ideas and knowledge. The other advantage of the accommodative style is that it treats the negotiating members as equal partners and the views of every person are taken into consideration. This style is concerned with creating mutual understanding among the participants especially with regards to conflict resolution. Information sharing is very important given that decisions will be made on the basis of common understanding. People should negotiate freely and they should not be forced into agreements that do not reflect their interests. Through the accommodative leadership style, every member involved in that process will be treated as an equal partner which is one major factor that determines the success of negotiation. 4.0 Review of the major insights Negotiation is a process as noted and there are many factors that influence the success of this process. The following is a summary of the factors that can be taken into consideration when one party is considering to get into an agreement with the other. The first step is that the involved party should gather as much information as possible with regards to subject area that will be discussed. This important step forms the crux of the negotiation process that will follow since it will allow the participant to gain knowledge about the other party as well as the factors that can affect the process. Determining the BATNA is another major insight that can contribute to the success of the negotiation process. This determines the success of the process since information required about the other party will be available. Determining the RP is another major consideration in this case given that the discussion will be centred around the value of the product that will be under discussion to be exchanged. There is need for the negotiators to determine their strengths and strive to make an offer first so as to be positioned to make an informed concession in the event that the other party is not very happy with the offer made. The negotiator must minimise the weaknesses that may be encountered and attempt to maximise the strengths. Appearance of the negotiator is the other insightful factor with regards to the process of negotiation. Usually, first impressions make lasting impressions and there is need for the parties involved to treat each other as equal partners. 5.0 Conclusion Over and above, it can be noted that negotiation is a process that is aimed at reaching an agreement between the parties involved. As noted above, there are different styles of negotiation and there are also many factors that influence the success or failure of a negotiation process. From this assertion, this report discussed the factors that influence the negotiation process and measures that can be implemented in order to improve negotiation skills in individuals. The report also explained in detail the phases involved in the negotiation process through an analysis of the details of the interview that was conducted by the writer. Some of the factors that were analysed include the following; there is need to establish a BATNA for the negotiation process as well as an RP as these play important roles in determining the extent to which a negotiation process can be successful. As noted from the results obtained from the interview carried, there are certain qualities expected of good leaders to successfully lead a negotiation process. Leaders must be good at planning and they must also be good listeners such that they will be able to accommodate the views of all the members involved. Effective negotiators should also make the first offer and be prepared to make necessary concessions. In order to avoid conflicts in negotiation, the parties involved should treat each other as equal and share all the information and ideas they may have pertaining to the discussion. Another factor that can positively contribute to the success of negotiation is that the parties involved must be ethical at all times. Practices such as lying should be condemned at all costs as this will discredit the negotiation process. As far as conflict resolution is concerned, the accommodative leadership style is more ideal since it is aimed at accommodating all the views of the parties involved. The decisions that will be made will reflect the interests of the people involved and will be based on mutual understanding. 6.0 References Bazerman, M.H. & Neale M.A. ( 1992). Negotiating rationally. New York. Free Press. Kennedy, G. (2004). Essential Negotiation. London. Profile Books Limited. Kennedy, G. (1997). Kennedy on negotiation. Gower. Aldershot. Noble, T., (2001). Improving negotiation skills: rules for a master negotiator. Retrieved from http://library.findlaw.com/2001/Jan/1/130785.html Rossouw, D. (2004). Business Ethics: 3rd Edition. Cape Town. Oxford University Press. Thomson, L. (2005). Developing a negotiation style. New Jersey. Prentice Hall. Thomson, L. (2001). The mind and the heart of the negotiator. 2nd Edition. New Jersey. Prentice Hall. Read More